Report Title:

Energy conservation; tax credit

Description:

Creates an income tax credit that may be claimed for the retail purchase of air conditioners, dishwashers, refrigerators, freezers, clothes washers, and dehumidifiers that satisfy the energy efficiency guidelines established by the federal Environmental Protection Agency and the federal Department of Energy under the Energy Star program.

HOUSE OF REPRESENTATIVES

H.B. NO.

2314

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO TAX CREDITS FOR ENERGY STAR RATED APPLIANCES.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the use of energy efficient electric appliances can save consumers money while slowing down increased demands placed upon the State's electric utility systems. Because inefficient appliances use more electricity, they cost more to use, create an increase in the use of petroleum based products, which add to green house gas emissions and contribute to the need for greater electricity generating capacity. By encouraging its consumers to use more energy-efficient appliances the State can help mitigate these types of adverse environmental and economic impacts.

The legislature also finds that Energy Star is a voluntary labeling program, supported by the federal government, that identifies and promotes energy-efficient products that help businesses and individuals save money and protect the environment. Through its partnerships with more than 8,000 private and public sector organizations, Energy Star delivers the technical information and tools that organizations and consumers need to choose energy-efficient solutions and best management practices. It is estimated by the United States Department of Energy that the Energy Star program has saved participating businesses, consumers, governments, and other organizations about $10 billion in 2004 alone.

The legislature further finds that the State should take a more active role in promoting and encouraging energy efficiency by making state tax incentives available for consumers who purchase these products in an effort to be more energy efficient. Despite significant, long-term savings, many consumers are hesitant to buy energy-efficient appliances because they cost more at the time of purchase than other models do. Encouraging the purchase and use of energy-efficient appliances through a tax credit will save consumers money, help the State reduce its dependence on petroleum products, preserve Hawaii's delicate environment, and reduce the need for building new electric generation capacity.

The purpose of this Act is to create an income tax credit for certain Energy Star approved appliances.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Energy Star rated appliance tax credit. (a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter a non-refundable income tax credit that shall be applied to the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed. The tax credit may be claimed for the retail purchase of appliances that satisfy the energy efficiency guidelines established by the federal environmental protection agency and the federal department of energy under the Energy Star program.

(b) The amount of the credit shall be ten per cent of the retail purchase price of any qualifying appliances purchased by the taxpayer during the taxable year, or $1,500, whichever is less.

(c) For purposes of this section "appliances" means air conditioners, dishwashers, refrigerators, freezers, clothes washers, and dehumidifiers.

(d) All claims, including amended claims, for a credit under this section must be properly filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the forgoing provision shall constitute a waiver of the credit.

(e) The director of taxation shall prepare any form that may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2005.

INTRODUCED BY:

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BY REQUEST